Accounts Receivable Confirmations — Positive and Negative. In their work on accounts receivable use of confirmations is of great importance.

Required

A. What is an audit confirmation?

B. What characteristics should an audit confirmation possess if an auditor is to consider it as sufficient appropriate audit evidence?

C. Distinguish between a positive and a negative accounts receivable confirmation.

D. In confirming a client’s accounts receivable, what characteristics should be present in the accounts if the auditor is to use negative confirmations?